Rebate Rightly Rejected

July 18, 2008

State Attorney General Richard Blumenthal hit the nail right on the head Monday when he issued an opinion that Gov. M. Jodi Rell's last-minute plan to give a modest rebate to electrical customers in Connecticut is illegal.

Lawmakers are due to approve regulations for the Regional Greenhouse Gas Initiative, a pact involving 10 Northeastern states that sets limits on power plant emissions. Allowances for those emissions will be auctioned off to power plants in September, with the proceeds going into energy conservation programs and renewable energy technologies, according to a bill passed by the legislature last year and signed into law by Mrs. Rell.

As the regulations were drawn up and submitted to the legislature's Regulations Review Committee, Mrs. Rell pushed for a last-minute proposal calling for a portion of the proceeds to be set aside as rebates to commercial, industrial and residential customers.

But the governor's rebate would likely amount to a few cents off the average homeowner's monthly bill. Ratepayers need relief; Mrs. Rell's rebate hardly qualifies.

Instead, homes and businesses will be able to reduce their energy bills if the auction proceeds are invested into programs that reduce demand for fossil fuels. Reducing overall demand also will save money by keeping those costly and polluting "peaking" plants off-line.

Also, as Mr. Blumenthal correctly notes, the law makes no provision for rebates. Its aim is to reduce emissions linked to climate change by cutting consumption of fossil fuels.

In the past two years, conservation programs in Connecticut have experienced an surge in requests from residents and businesses wanting to learn ways to save energy. The state is at a "teachable moment."

By investing in conservation now and helping businesses and homes reduce their fossil fuel costs, Connecticut will be helping ratepayers cope with the demands of tomorrow. Mrs. Rell's proposal - a political gambit in a legislative election year - would help only for a day.